Tesla forms three-member panel to decide on any Musk proposal

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Musk shocked markets last week with the tweeted announcement that he was considering taking Tesla private for $420 a share, a price that valued Tesla at more than $70 billion, and that he had "funding secured". The SEC has asked Tesla for more details about Musk's tweets and proof that he has secured the necessary funding for the transaction.

Bloomberg had reported earlier on Tuesday that Goldman was not tapped as an adviser when Musk revealed the go-private plans last week.

Musk quickly doubled down on the maybe-joke, replying to his tweet by calling Tesla's forthcoming fashion offerings "S3XY" and "unis3x" and suggesting that they be teamed with "thigh-high sock boots".

According to Musk, the Saudi sovereign fund expressed its interest in order to diversify from oil and "has more than enough capital needed to execute on such a transaction".

Earlier this month, Musk tweeted his plan to send Greenlight Capital hedge funder (and Tesla short-seller) David Einhorn a box of shorts as a consolation price for Tesla's rising stock.

Musk's attempt to take the carmaker private requires approval from the committee, the filing by Tesla said.

On Monday, he said financing had been discussed with Saudi Arabia.


The committee, made up of three independent directors, said Tuesday that it has not received any formal proposal from Musk.

Tesla declined to comment further on the matter. "Among other things, this will allow me to obtain a more precise understanding of how many of Tesla's existing public shareholders would remain shareholders if we became private".

Tesla said the committee consists only of independent directors: Brad Buss, Robyn Denholm and Linda Johnson Rice.

California-based Tesla has become one of the most valuable automakers on expectations it will disrupt the industry, although it produced only slightly more than 100,000 vehicles previous year.

Buss was chief financial officer of solar panel installer SolarCity for two years before retiring when Tesla paid $2.6 billion for the sales and installation firm in 2016. Musk allegedly admitted that he "was angry at the company's critics".

Elon Musk said via Twitter on Monday evening that he was working with Goldman Sachs and Silver Lake as financial advisers on a proposal to take Tesla private.

Latham and Watkins LLP has been retained by the committee as its legal counsel.

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